Did you know that for every ounce of gold that is mined ten ounces of silver are also mined?

Yet gold costs 66 times as much as silver at today's prices.

This is rather odd since silver has many more uses in industry than does gold. Tiny amounts of silver are used in cell phones computers, etc. The amounts are too small to make retrieval worthwhile, at least at present prices. Still gobs of silver are used up in total.

The US Geological Survey says we might actually run out of silver based on their estimates. Not everyone agrees with their assessment, however. But it is safe to say that the stores of silver are greatly decreasing with each passing year.

If gold is priced 66 times higher than silver although the mined ratio is 1 to 10, then the upside to silver is at least 6.6 times higher than gold.

It's possible if silver were to become scarce enough that the prices of the two metals could be equal. Today gold might run you about $1,236 dollars. Meanwhile, an ounce of silver is a paltry $18.72. But imagine a day when gold is $5,000 and silver is the same! You could buy 250 ounces of silver for $5,000 but only 4 ounces of gold for $5,000. So $5,000 of silver bought today would be worth $1,250,000 to you but the gold investment would be worth only $20,000.

The prices of these two precious metals are being manipulated like crazy and have been for quite some time. Thus don't expect silver to go to $5,000 any time soon. In fact, the crooks who run the market are just as likely to take the price down to $10 and hold it there for a while.

But some day, nations will snatch up the silver and force the prices higher and higher in the process. When? No one knows. It could be several years from now or even longer. But I would be ready for when they make their move. It might be your only rescue as our currency will be biting the dust in the process.

China is snatching it up as fast as it can be sold to them.
If you're looking for a SHTF stockpile, I use this type of list:
Water
Food
First aid supplies
Ammo
Liqueur
Tobacco
Precious metals
Hand tools

As time passes, and the herd is drastically thinned, the order of the list will invert in importance.

two months ago you couldn't get any silver eagles in this area ..if it drops to ten bucks ya won't find any to buy..if ya have any hang onto it and ride it out and if you have any sterling flatware trade for silver bars if ya can

(06-27-2013, 01:46 PM)Shadow Wrote: Good article BAG. Historically, the ratio of gold to silver is about 1:17, silver is waay undervalued. Or gold is overvalued? If silver goes to $10 that's a buying opportunity is all.

Thanks, Shadow.

Silver is a steal at $18.50 even if it were to drop to $10 because when it goes to $150 or $200 it won't matter that you didn't buy it at the very bottom. No one knows what the real bottom will be, so trying to squeeze the last penny or dollar by trying to get the very lowest price is a crap shoot.

(06-27-2013, 12:12 PM)bohica Wrote: China is snatching it up as fast as it can be sold to them.
If you're looking for a SHTF stockpile, I use this type of list:
Water
Food
First aid supplies
Ammo
Liqueur
Tobacco
Precious metals
Hand tools

As time passes, and the herd is drastically thinned, the order of the list will invert in importance.

China is snatching up gold for sure. Not so sure about them hoarding silver. That might explain why gold is so much higher than silver right now.

For 99% of the people silver is more affordable. There is a statistic out there that the average income for the lowest 90% of the population is about $31,000. It's only by adding the top 10% that average salaries rise to $50,000. So buying gold is out of the question for most of us.

It turns out that is a good thing should silver reach its real value. If you have just $100 in silver right now, and TSHTF - which it will before 2020 - silver could easily go to $5,000 or even $10,000 an ounce. So your five ounce purchase would be worth $25,000 to $50,000.

Of course a loaf of bread will be $100 or $200, but it's still better to have the $50,000 'insurance policy' than not to have it and be stuck with the original $100 which will only get you a half a loaf.